Not every small business owner needs to pitch to VCs to secure funding for their business. With Startup Business loans, they can easily obtain the necessary funding from the comfort of their homes. Let us understand in detail.
Why should you get Start-up loans?
Every business has its challenges, especially when it comes to obtaining a capital backup for a business strategy. Startup business loan can help finance budding entrepreneurs achieve their business goals without depending on other means of investment. A business owner can use borrowed funds to purchase equipment, machinery, or inventory, hire new employees, or open a retail store. The other reasons to get start-up loans are:
- Retain Business Ownership
When you can secure the necessary funds by yourself, there is no need for investors who demand a share of your equity. It also saves you from the hassle of knocking on many doors for adequate funding requirements. Business loans also give you the freedom to choose your investor based on the business strategy than the monetary advantage.
- Hassle-Free Immediate Funding
There is no wait or consecutive follow-ups to obtain funds for your business. Start-up loans are sanctioned within a day, and the funds reach your account within the next 30 minutes of sanction. Hence, there is no waiting time as the process is clear and transparent.
- Collateral Free
Business loans are unsecured and hence do not require to pledge any asset as security. Thus with business loans, you can separate personal assets from your business.
- Easy Repayments
Since business loans have flexible repayment options, one can easily choose the repayment tenure and an affordable EMI that best fits their bill. This calculation can be done in a jiffy using a self-help tool called the business loan EMI calculator.
- Build Business Credit
A business will need funding more than once for expansion or cash confusion. Business owners can easily obtain sufficient funding at lower interest rates with a high credit score. Taking a start-up loan and ensuring timely repayments can help build a high credit score for your business. This will pave the way to lucrative loan deals in the future.
Who can get a small business loan?
To obtain a business loan, the loan seekers should qualify the below requisites:
- Enterprises with a minimum gross revenue of INR 10 Lakhs.
- Enterprises make a profit for at least two years.
- Applicant’s age should be at least 22 years and a maximum of 65 years.
- Indian Citizenship
- A credit score of at least 700.
- The applicant should be associated with the current business for a minimum of three years.
- The applicant should have a total business experience of five years.
- The enterprise should have a minimum income of INR 2 Lakhs every year.
- The applicant should be one of the below categories:
- Self-employed Professionals
- Self-employed Non-professionals
- Private Firms
- Partnership Firms
- Proprietors
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How to Avail a Start-up Business Loan?
Getting unsecured funding is quicker than a secured one. This is because the documentation is minimal in unsecured loans. so, if the documents are intact, you can obtain the necessary funds within 24* hours. Here’s how you can do so:
Steps to Getting a Startup Business Loan:
Step #1: To get started, you can make use of a business loan eligibility calculator to gauge your financial profile and determine the loan amount.
Step #2: Check the loan eligibility criteria and apply for the loan if you meet the requisites.
Step #3: Fill in the online application form and upload the documents requested.
Step #4: A representative will contact you to assist with the application process until you receive your funds.
A start-up loan can offer business owners immediate funds up to 50* Lakhs based on the individual profile and repayment capacity. However, if the requirement exceeds the loan eligibility, one can avail of Loan Against Property for SME. The Loan Against property offers loans up to 5 Crores depending on the property pledged at interest rates starting at 9%. Apply today!
